Gujarat Power Bills Set to Rise With FPPAS Hike

AHMEDABAD : Electricity consumers across the state are set to face a higher financial burden after government-owned power distribution companies revised the Fuel and Power Purchase Adjustment Surcharge (FPPAS), increasing the base rate and introducing a new variable component.

The revised calculation is expected to push electricity bills up by around 40 to 45 paise per unit on average, adding to the pressure on households already dealing with rising costs across essential sectors.

The base FPPAS rate has been increased by 15 paise per unit, from ₹2.30 to ₹2.45 per unit. More significantly, a 3.99% variable FPPAS charge has been introduced under the revised tariff mechanism.

New 3.99% Variable Charge

Under the revised formula, the additional 3.99% charge will not be calculated solely on electricity consumption. It will be applied to the combined amount of the consumer’s energy charges, base FPPAS and fixed or demand charges.

The calculation will be made on the bill amount excluding electricity duty. Excess-demand charges and penalties will remain outside the scope of this variable component.

The new mechanism means consumers could see a noticeable increase in their electricity bills depending on their monthly consumption and applicable fixed charges.

A consumer using around 300 units a month could face an additional burden of approximately ₹125, according to the calculations based on the revised rates. Consumers with higher usage could see a larger increase.

Revised Rates Effective From July 1

The revised rates have been ordered to take effect from July 1, meaning the additional charge will apply to electricity consumed from that date.

Consumers whose July and August billing cycles are pending could therefore see the revised FPPAS reflected in their upcoming bills. Those receiving bills under a new billing cycle will also have the additional amount calculated for consumption from July 1 onward.

“This revision changes the way FPPAS is calculated. Consumers will now have to account for both the increased base surcharge and the new variable component,” according to the tariff-related explanation accompanying the revision.

Why Is FPPAS Revised?

FPPAS is periodically reviewed to account for changes in the cost of power procurement and fuel used for electricity generation.

Coal, natural gas and other fuels form a significant part of the power-generation mix. Fluctuations in domestic and international fuel prices can increase generation and power-purchase costs for distribution companies.

The additional cost is subsequently recovered through FPPAS after periodic reviews.

For consumers, however, the revised mechanism translates directly into higher electricity bills.

With the base rate already moving up to ₹2.45 per unit and the new 3.99% variable component coming into force, households and businesses will need to factor in the additional charge while estimating their upcoming electricity expenses.